A SMSFs is a Superannuation fund that is operated and controlled by its members (not a superannuation provider). A SMSF (with the exception of single member funds) are defined as having the following characteristics:

Less than 5 members

Each member of the fund is a trustee

No member of the fund is an employee of another member, unless those members are related

No trustee of the fund receives remuneration for his or her services as a trustee

The members are automatically trustees either as individuals or as directors of a company that acts as trustee. In this situation all the directors of the trustee company are members.
Since all members have to be trustees, this ensures that each member is fully involved and has the opportunity to participate in the decision-making processes of the fund.

The rules vary slightly for single member funds:

The member is an individual trustee together with another individual that is a relative or another individual that does not employ the member

or the member is a sole director of the trustee company

or the member is a director of trustee company together with another director that is a relative

or another person that does not employ the member, provided there are only two directors

In the same way as other superannuation funds, a SMSF receives concessional tax treatment, however since you control your money there are special rules relating to the operation of a SMSF and the investments it is allowed to make to ensure the tax concessions surrounding superannuation money is not abused.

SMSFs are regulated by the Australian Taxation Office (ATO) and are therefore subject to the ATO's audit process. We can help you in ensuring your Self Managed Super Fund remains compliant.